216. a Bond Discount Must

question 30

Multiple Choice

216. A bond discount must

• A) always be amortized using straight-line amortization.
• B) always be amortized using the effective-interest method.
• C) be amortized using the effective-interest method if it yields annual amounts that are materially different than the straight-line method.
• D) be amortized using the straight-line method if it yields annual amounts that are materially different than the effective-interest method. s

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Definitions:

Defense Mechanism

Mental tactics employed by people to deal with real-life situations and preserve their sense of self.

Regression

A return to earlier stages of development in behavior, thought, or emotional functioning, often as a response to stress or trauma.

Juvenile Behavior

Actions or conduct typical of younger individuals or adolescents, often characterized by immaturity or inexperience.

Defense Mechanism

Psychological strategies brought into play by the unconscious mind to protect itself against anxiety by denying or distorting reality.